Cayman Takes Steps to Implement Tax Information Exchange Initiatives

Published 4th February 2014, 1:47pm

A working group, comprising public- and private-sector representatives, is assisting with the development of the Cayman Islands’ legal framework for the automatic exchange of information (AEOI) for tax purposes, in order to respond to international initiatives that include US and UK FATCA.

The working group will provide its recommendations regarding draft primary legislation, for consideration by the Legislative Assembly during its May session, said group Chairman Roy McTaggart.

The group also will work on draft regulations, and guidance notes as appropriate, for Cayman’s financial services industry.

‘AEOI is rapidly becoming the global standard for tax information exchange’, he said. ‘While the public is increasingly familiar with the terms “US FATCA” and “UK FATCA”, it is important for them to understand that those initiatives are mechanisms for the automatic exchange of information for tax purposes. Other mechanisms will develop, whether by individual countries or on a global scale.

‘The working group is therefore assisting with the development of Cayman’s legislative and regulatory framework to meet both the current needs of US and UK FATCA, as well as future AEOI initiatives’.

The organisations represented in the working group were selected because their work overarches all sectors in the financial services industry. In the case of the sector-specific Cayman Islands Bankers Association, it was selected because of the central role that banks have in fulfilling exchange of information requests.

However, members of sector-specific associations will have opportunities to participate in subgroups. ‘When the working group is considering aspects of legislation, regulation and guidance notes that would affect a certain sector in particular, we will draw upon the expertise of persons in that sector’, Mr McTaggart said.

The working group expects to complete its work in accordance with US and UK timelines.

For more information, please contact the Financial Services Secretariat at (345) 945-5819 or via email at financepr@gov.ky.